County Levy May See 5 1/2% Hike

Spending Could Increase Slightly After Year Of Cuts

McHenry County officials plan to request nearly 5 1/2 percent more in property taxes next year, the smallest percentage increase in 5 years.

The Finance Committee recommended the increase Tuesday. If the County Board approves the levy next month as expected, the county's property-tax receipts will climb to $26.6 million from $25.2 million.

Finance Committee Chairman John Colomer noted that spending in the general fund, which pays most salaries and other operating costs, would increase 4.6 percent next year. At $36.5 million, general-fund spending would be nearly $1 million less than in 1997 and $2 million less than in 1996.

"To have the lowest levy increase in 5 years is very commendable," Colomer said to Finance Manager Richard Roleck, who has been handling the county's finances since spring.

"The painful cuts of last year were necessary to make this year's budget possible," Colomer said.

Although county officials were touting their fiscal responsibility, general spending will increase next year after 2 years of declines. The proposed budget for next year of $101.6 million is 10.7 percent higher than the 1998 budget.

The County Board last year cut general-fund spending about $2.6 million to narrow a growing gap between spending and revenues. But those cuts came with a price: nearly two dozen layoffs, projects put on hold and pay increases that averaged 1.25 percent, sparking a movement among workers for union representation. The Teamsters union now represents two small units of county government.

Roleck said next year's tax levy proposal would enable the county to keep current staffing levels and fund spending increases in mental health, the courts, the state's attorney's office, the Planning and Development Department and the Health Department. It also would help the county keep general fund cash reserves at about $6.1 million, enough to cover slightly more than two months of operating expenses. The local government standard is to have a three-months' cushion.

The largest property-tax levy would be for the general fund, a $956,000 increase to $9.8 million. The county also plans to take $2.9 million for the retirement fund, $2.7 million for the highway fund and $2.2 million for the liability insurance fund.

The Mental Health Board levy would climb about $308,000 to $5.9 million. That levy is included with the county levy, although a separate appointed board oversees mental-health fund spending.

The money expected to be collected for the tax levies would make up about one-third of the amount needed to cover next year's projected spending of $101.6 million. Another $60.2 million would come from sales taxes, motor fuel taxes, service fees, court fines, state and federal grants and other revenue sources, up from $56.9 million this year.

The remaining difference between spending and revenue--about $10.3 million--would be covered by using certain funds' cash reserves.